BILL NUMBER: AB 1528	CHAPTERED  08/31/99

	CHAPTER   272
	FILED WITH SECRETARY OF STATE   AUGUST 31, 1999
	APPROVED BY GOVERNOR   AUGUST 30, 1999
	PASSED THE ASSEMBLY   AUGUST 16, 1999
	PASSED THE SENATE   JULY 15, 1999
	AMENDED IN SENATE   JULY 14, 1999
	AMENDED IN SENATE   JULY 1, 1999

INTRODUCED BY   Assembly Member Strom-Martin

                        FEBRUARY 26, 1999

   An act to amend Sections 19849.9, 19871.2, 22754, and 22955 of the
Government Code, relating to state employee benefits, and declaring
the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1528, Strom-Martin.  State employee benefits.
   Existing law authorizes the appointing power of a state agency to
expend not more than $75 for a certificate, plaque, or memento to be
presented to an employee or a retired employee who has completed 25
or more years of state service.
   This bill would raise that amount to $90 and, beginning January 1,
2005, and every 5 years thereafter, would authorize the Director of
Personnel Administration to adjust this limit to reflect the average
rate of inflation.
   (1) Existing law provides that nonrepresented state employees are
eligible for industrial disability leave benefits for up to 52 weeks
within a 2-year period.
   This bill would clarify the application of that eligibility period
to enhanced industrial disability leave benefit provisions.
   (2) The Public Employees' Medical and Hospital Care Act, provides
health benefits plan coverage to public employees and annuitants
meeting the eligibility requirements prescribed by the Board of
Administration of the Public Employees' Retirement System.  The act
defines the term "employee" for these purposes.  The act also
provides a special definition of "eligible employee" as it applies to
state employees in State Bargaining Unit 8 or 16.
   This bill would delete state employees in State Bargaining Unit 8
from the application of the special definition of "eligible employee"
for purposes of the act.
   (3) The State Employees' Dental Care Act, provides dental care
plan coverage to public employees and annuitants meeting the
eligibility requirements prescribed by the Board of Administration of
the Public Employees' Retirement System.  Existing law provides that
notwithstanding particular provisions of the act, state employees in
State Bargaining Unit 6, 8, or 16 may receive a percentage of the
employer's contribution payable for annuitants if the employees are
credited with 10 years of state service.
   This bill would delete a provision making the application of that
limitation retroactive to specified employees in State Bargaining
Unit 16.
   (4) The bill would incorporate additional changes to Section 22754
of the Government Code, made by this bill and AB 211 to take effect
if both bills are enacted and this bill is enacted last.
   (5) The bill would declare that it is to take effect immediately
as an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 19849.9 of the Government Code is amended to
read:
   19849.9.  (a) Any appointing power may present to an employee who
has completed 25 or more years of state service a certificate,
plaque, or other suitable memento and the cost of the same shall be a
proper charge against the support appropriation of the department or
office in which the employee serves.  The cost of any certificate,
plaque, or memento shall not exceed the sum of  ninety dollars ($90).
  A presentation may likewise be made to a retired employee who on
the date of his or her retirement had completed 25 or more years of
state service.
   (b) Beginning January 1, 2005, and every five years thereafter,
the director may adjust the limit specified in subdivision (a) to
reflect the average rate of inflation since the dollar amount was
last adjusted.
  SEC. 2.  Section 19871.2 of the Government Code is amended to read:

   19871.2.  When an excluded employee is temporarily disabled for
more than 22 consecutive working days by an injury or type of injury
designated by the director as qualifying an employee for the benefits
of this section, he or she shall receive an enhanced industrial
disability leave benefit.  The enhanced benefit shall be equivalent
to the injured employee's net take home salary on the date of
occurrence of injury.  Eligibility and benefits may not exceed 52
weeks within a two-year period after the date of occurrence of the
injury.  For the purposes of this section, "net salary" means the
amount of salary received after federal income tax, state income tax,
and the employee's retirement contribution has been deducted from
the employee's gross salary.
   The final decision as to whether an employee is eligible for, or
continues to be eligible for, enhanced benefits shall rest with the
appointing authority or his or her designee.  The appointing
authority may periodically review the employee's condition by any
means necessary to determine an employee's continued eligibility for
enhanced benefits.
  SEC. 3.  Section 22754 of the Government Code is amended to read:
   22754.  As used in this part the following definitions, unless the
context otherwise requires, shall govern the interpretation of
terms:
   (a) "Board" means the Board of Administration of the Public
Employees' Retirement System.
   (b) "Employee" means:
   (1) Any officer or employee of the State of California or of any
agency, department, authority, or instrumentality of the state
including the University of California, or any officer or employee
who is a local or school member of the Public Employees' Retirement
System employed by a contracting agency that has elected to be or
otherwise has become subject to this part, or who is a member or
retirant of the State Teachers' Retirement System employed by an
employer who has elected to become subject to this part, or who is an
employee or annuitant of a special district or county subject to the
County Employees Retirement Law of 1937 (Chapter 3 (commencing with
Section 31450) of Part 3 of Division 4 of Title 3) that has elected
to become subject to this part, or who is an employee or annuitant of
a special district, as defined in subdivision (i), that has elected
to become subject to this part, except persons employed on an
intermittent, irregular or less than half-time basis, or employees
similarly situated, or employees in respect to whom contributions by
the state for any type of plan or program offering prepaid hospital
and medical care are otherwise authorized by law.
   (2) Any officer or employee who participates in the retirement
system of a contracting agency as defined in paragraph (2) of
subdivision (g) that has elected to become subject to this part,
except persons employed less than half time or who are otherwise
determined to be ineligible.
   (3) Any annuitant of the Public Employees' Retirement System
employed by a contracting agency as defined in subdivision (g) that
has elected to become subject to this part who is a person retired
under Section 21228.
   (4) Notwithstanding paragraph (1), "eligible employee" of the
State of California, as it applies to state employees in State
Bargaining Unit 16, means (A) a permanent employee appointed half
time or more; (B) an employee who is a limited term or temporary
authorization appointee who continues coverage based on prior
continuous permanent status; (C) an employee who is in a half time or
more limited-term appointment shall qualify after working six
consecutive months; and (D) an employee appointed half time or more
to a temporary appointment in lieu of a permanent appointment; and
(E) a permanent intermittent employee who works a minimum of 480
hours in a six-month control period.  All other limited-term,
nonstatus employees as defined by the Department of Personnel
Administration and temporary authorization employees are not
eligible.
   (c) "Carrier" means a private insurance company holding a valid
outstanding certificate of authority from the Insurance Commissioner
of the state, a medical society or other medical group, a nonprofit
hospital service plan qualifying under Chapter 11A (commencing with
Section 11491) of Part 2 of Division 2 of the Insurance Code, or
nonprofit membership corporation lawfully operating under Section
9200 or Section 9201 of the Corporations Code, or a health care
service plan as defined under subdivision (f) of Section 1345 of the
Health and Safety Code, or a health maintenance organization approved
under Title XIII of the federal Public Health Services Act, that is
lawfully engaged in providing, arranging, paying for, or reimbursing
the cost of personal health services under insurance policies or
contracts, medical and hospital service agreements, membership
contracts, or the like, in consideration of premiums or other
periodic charges payable to it.
   (d) "Health benefits plan" means any program or entity that
provides, arranges, pays for, or reimburses the cost of health
benefits.
   (e) "Annuitant" means:
   (1) Any person who has retired within 120 days of separation from
employment and who receives any retirement allowance under any state
or University of California retirement system to which the state was
a contributing party.
   (2) A family member receiving an allowance as the survivor of an
annuitant who has retired as provided in paragraph (1), or as the
survivor of a deceased employee under Section 21541, 21545, or 21546
or similar provisions of any other state retirement system.
   (3) Any employee who has retired under the retirement system
provided by a contracting agency as defined in paragraph (2) of
subdivision (g) and who receives a retirement allowance from that
retirement system, or a surviving family member who receives the
retirement allowance in place of the deceased.
   (4) Any person who was a state member for 30 years or more and
who, at the time of retirement, was a local member employed by a
contracting agency.
   (f) (1) "Family member" means an employee's or annuitant's spouse
and any unmarried child (including an adopted child, a stepchild, or
recognized natural child who lives with the employee or annuitant in
a regular parent-child relationship).  The board shall, by
regulation, prescribe age limits and other conditions and limitations
pertaining to unmarried children.
   (2) Notwithstanding paragraph (1), this paragraph shall apply only
to state employees, as defined in Section 19815, that are in State
Bargaining Unit 5.  "Family member" only means an employee's legal
spouse and any unmarried child, adopted child, stepchild, recognized
natural child, or legal ward living with the employee in a regular
parent-child relationship.
   (g) "Contracting agency" means:
   (1) Any contracting agency as defined in Section 20022, any county
or special district subject to the County Employees Retirement Law
of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of
Division 4 of Title 3), and any special district, school district,
county board of education, personnel commission of a school district
or a county superintendent of schools.
   (2) Any public body or agency of, or within California not covered
by the Public Employees' Retirement System or subject to the County
Employees Retirement Law of 1937 (Chapter 3 (commencing with Section
31450) of Part 3 of Division 4 of Title 3), that provides a
retirement system for its employees funded wholly or in part by
public funds.
   (h) "Employer" means the state, any contracting agency employing
an employee, and any agency that has elected to become subject to
this part pursuant to Section 22856.
   (i) "Special district" means a nonprofit, self-governed public
agency, within the State of California and comprised solely of public
employees, performing a governmental rather than proprietary
function.
  SEC. 3.5.  Section 22754 of the Government Code is amended to read:

   22754.  As used in this part the following definitions, unless the
context otherwise requires, shall govern the interpretation of
terms:
   (a) "Board" means the Board of Administration of the Public
Employees' Retirement System.
   (b) "Employee" means:
   (1) Any officer or employee of the State of California or of any
agency, department, authority, or instrumentality of the state
including the University of California, or any officer or employee
who is a local or school member of the Public Employees' Retirement
System employed by a contracting agency that has elected to be or
otherwise has become subject to this part, or who is a member or
retirant of the State Teachers' Retirement System employed by an
employer who has elected to become subject to this part, or who is an
employee or annuitant of a special district or county subject to the
County Employees Retirement Law of 1937 (Chapter 3 (commencing with
Section 31450) of Part 3 of Division 4 of Title 3) that has elected
to become subject to this part, or who is an employee or annuitant of
a special district, as defined in subdivision (i), that has elected
to become subject to this part, except persons employed on an
intermittent, irregular or less than half-time basis, or employees
similarly situated, or employees in respect to whom contributions by
the state for any type of plan or program offering prepaid hospital
and medical care are otherwise authorized by law.
   (2) Any officer or employee who participates in the retirement
system of a contracting agency as defined in paragraph (2) of
subdivision (g) that has elected to become subject to this part,
except persons employed less than half time or who are otherwise
determined to be ineligible.
   (3) Any annuitant of the Public Employees' Retirement System
employed by a contracting agency as defined in subdivision (g) that
has elected to become subject to this part who is a person retired
under Section 21228.
   (4) Notwithstanding paragraph (1), "eligible employee" of the
State of California, as it applies to state employees in State
Bargaining Unit 16, means (A) a permanent employee appointed half
time or more; (B) an employee who is a limited term or temporary
authorization appointee who continues coverage based on prior
continuous permanent status; (C) an employee who is in a half time or
more limited-term appointment shall qualify after working six
consecutive months; and (D) an employee appointed half time or more
to a temporary appointment in lieu of a permanent appointment; and
(E) a permanent intermittent employee who works a minimum of 480
hours in a six-month control period.  All other limited-term,
nonstatus employees as defined by the Department of Personnel
Administration and temporary authorization employees are not
eligible.
   (5) Any teaching associate, lecturer, coach, or interpreter
employed by the California State University who is appointed to work
in an academic year classification for at least six weighted teaching
units for one semester, or for at least six weighted teaching units
for two or more consecutive quarter terms.  This subdivision shall
not apply to a state member employed by the California State
University, unless provided for in a memorandum of understanding
reached pursuant to Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, or authorized by the Trustees of the
California State University for employees excluded from collective
bargaining.
   (c) "Carrier" means a private insurance company holding a valid
outstanding certificate of authority from the Insurance Commissioner
of the state, a medical society or other medical group, a nonprofit
hospital service plan qualifying under Chapter 11A (commencing with
Section 11491) of Part 2 of Division 2 of the Insurance Code, or
nonprofit membership corporation lawfully operating under Section
9200 or Section 9201 of the Corporations Code, or a health care
service plan as defined under subdivision (f) of Section 1345 of the
Health and Safety Code, or a health maintenance organization approved
under Title XIII of the federal Public Health Services Act, that is
lawfully engaged in providing, arranging, paying for, or reimbursing
the cost of personal health services under insurance policies or
contracts, medical and hospital service agreements, membership
contracts, or the like, in consideration of premiums or other
periodic charges payable to it.
   (d) "Health benefits plan" means any program or entity that
provides, arranges, pays for, or reimburses the cost of health
benefits.
   (e) "Annuitant" means:
   (1) Any person who has retired within 120 days of separation from
employment and who receives any retirement allowance under any state
or University of California retirement system to which the state was
a contributing party.
   (2) A family member receiving an allowance as the survivor of an
annuitant who has retired as provided in paragraph (1), or as the
survivor of a deceased employee under Section 21541, 21545, or 21546
or similar provisions of any other state retirement system.
   (3) Any employee who has retired under the retirement system
provided by a contracting agency as defined in paragraph (2) of
subdivision (g) and who receives a retirement allowance from that
retirement system, or a surviving family member who receives the
retirement allowance in place of the deceased.
   (4) Any person who was a state member for 30 years or more and
who, at the time of retirement, was a local member employed by a
contracting agency.
   (f) (1) "Family member" means an employee's or annuitant's spouse
and any unmarried child (including an adopted child, a stepchild, or
recognized natural child who lives with the employee or annuitant in
a regular parent-child relationship).  The board shall, by
regulation, prescribe age limits and other conditions and limitations
pertaining to unmarried children.
   (2) Notwithstanding paragraph (1), this paragraph shall apply only
to state employees, as defined in Section 19815, that are in State
Bargaining Unit 5.  "Family member" only means an employee's legal
spouse and any unmarried child, adopted child, stepchild, recognized
natural child, or legal ward living with the employee in a regular
parent-child relationship.
   (g) "Contracting agency" means:
   (1) Any contracting agency as defined in Section 20022, any county
or special district subject to the County Employees Retirement Law
of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of
Division 4 of Title 3), and any special district, school district,
county board of education, personnel commission of a school district
or a county superintendent of schools.
   (2) Any public body or agency of, or within California not covered
by the Public Employees' Retirement System or subject to the County
Employees Retirement Law of 1937 (Chapter 3 (commencing with Section
31450) of Part 3 of Division 4 of Title 3), that provides a
retirement system for its employees funded wholly or in part by
public funds.
   (h) "Employer" means the state, any contracting agency employing
an employee, and any agency that has elected to become subject to
this part pursuant to Section 22856.
   (i) "Special district" means a nonprofit, self-governed public
agency, within the State of California and comprised solely of public
employees, performing a governmental rather than proprietary
function.
  SEC. 4.  Section 22955 of the Government Code is amended to read:
   22955.  (a) Notwithstanding Sections 22953 and 22954, an employee
in State Bargaining Unit 6, 8, or 16 who becomes a state member of
the Public Employees' Retirement System after January 1, 1999, and
who is included in the definition of state employee in subdivision
(c) of Section 3513 shall not receive any portion of the employer's
contribution payable for annuitants, pursuant to Sections 22953 and
22954, unless the employee is credited with 10 years or more of state
service, as defined by this section, at the time of retirement.
   (b) The percentage of employer's contribution amount payable for
postretirement dental care benefits for an employee subject to this
section shall be based on the funding provision of the plan and the
member's completed years of state service at retirement as shown in
the following table:


                                       Percentage of Employer
Credited Years of Service                    Contribution

       10 ........................               50
       11 ........................               55
       12 ........................               60
       13 ........................               65
       14 ........................               70
       15 ........................               75
       16 ........................               80
       17 ........................               85
       18 ........................               90
       19 ........................               95
       20 ........................              100

   (c) This section shall only apply to state employees who retire
for service.
   (d) Benefits provided to an employee subject to this section shall
be applicable to all future state service.
   (e) For purposes of this section, "state service" means service
rendered as an employee or an appointed or elected officer of the
state for compensation.  In those cases where the state assumes or
has assumed from a public agency a function and the related
personnel, service rendered by that personnel for compensation as
employees or appointed or elected officers of that local public
agency shall not be credited, at retirement, as state service for the
purposes of this section, unless the former employer has paid or
agreed to pay the state agency the amount actuarially determined to
equal the cost for any employee dental benefits that were vested at
the time that the function and the related personnel were assumed by
the state.  For noncontracting local public agencies the state
department shall certify the completed years of local agency service
to be credited to the employee to the Public Employees' Retirement
System at the time of separation for retirement.
   (f) Whenever the state contracts to assume a local public agency
function, completed years of service rendered by the personnel for
compensation as employees or appointed or elected officers of the
local public agency shall be credited as state service only upon a
finding by the Department of Finance that the contract contains a
benefit factor sufficient to reimburse the state for the amount
necessary to compensate the state fully for postretirement dental
benefit costs for those personnel.
   (g) This section shall not apply to employees of the California
State University or the Legislature.
  SEC. 5.  Section 3.5 of this bill incorporates amendments to
Section 22754 of the Government Code proposed by both this bill and
AB 211.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, but this bill
becomes operative first, (2) each bill amends Section 22754 of the
Government Code, and (3) this bill is enacted after AB 211, in which
case Section 22754 of the Government Code, as amended by Section 3 of
this bill, shall remain operative only until the operative date of
AB 211, at which time Section 3.5 of this bill shall become
operative.
  SEC. 6.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order for collective bargaining agreements to be implemented
during the 1998-99 fiscal year, the act must take effect immediately.
